Ticket Sales.
The means by which a person may purchase admission tickets from ticket sellers to certain events in this state is regulated. Specifically, a person is prohibited from using or selling software to circumvent, thwart, interfere with, or evade access controls or security measures on a ticket seller's website, in furtherance of the Legislature's intent to protect consumers and ticket sellers from software that simulates the action of a human being purchasing tickets from a ticket seller, in order to evade controls on the ticket seller's website. A "ticket seller" is a person that makes admission tickets available at an initial presale or sale to the general public, either directly or indirectly, and an "admission ticket" is evidence of a right of entry to an "event," which, as defined, includes a concert, theatrical performance, sporting event, exhibition, show, or similar activity held in this state.
The use or sale of software to interfere with or disrupt the operation of ticket sales over the internet is found to be an unfair or deceptive act in trade or commerce and an unfair method of competition for the purposes of applying the Consumer Protection Act (CPA). The CPA prohibits unfair or deceptive acts or practices in trade or commerce; the formation of contracts, combinations, and conspiracies in restraint of trade or commerce; and monopolies. Persons injured by violations of the CPA may bring a civil action to enjoin further violations and recover actual damages, costs, and attorney's fees. The Attorney General may bring an action in the name of the State, or as parens patriae on behalf of persons residing in the state, against any person to enjoin violations of the CPA and obtain restitution.
Ticket Sales Prohibited Acts.
The prohibition on using software to circumvent or evade a security measure or other control on a ticket seller's internet website is expanded to apply to an application, phone system, or similar technology, and specifies that the prohibition is on the use of software that circumvents technology used by a ticket seller to enforce posted event admission ticket purchasing limits or to maintain the integrity of posted online admission ticket purchasing order rules.
It is also prohibited for a person to knowingly resell or offer for resale an admission ticket that such person knows was obtained using software to circumvent, thwart, interfere with, or evade a security measure, access control system, or other control or measure on a ticket seller's internet website, application, phone system, or similar technology. Violations of these prohibitions are enforceable through the CPA.
Ticket Sales License Established.
A license is created that must be obtained in order for a person to engage in the business of a ticket seller, ticket reseller, or ticket resale marketplace, and is administered by the Department of Licensing (DOL). The following definitions are established:
When applying for a license, applicants must disclose whether they own, are owned by, or share common ownership with any other ticket seller or ticket reseller. No person may hold more than two ticket sales licenses, and no license may be transferred, except with the DOL's written permission.
The Uniform Regulation of Business and Professions Act governs discipline of licensees, and the DOL Director is authorized to set license and renewal fees, adopt rules, and set license expiration and renewal dates. Receipts from administration of the license are deposited into the Business and Professions Account.
Licensees must also register with the Secretary of State for a business license to do business in Washington.
Required Disclosures.
Price Disclosures.
Ticket sellers, ticket resellers, and ticket resale marketplaces may not sell, resell, or offer for sale or resale admission tickets without disclosing to a consumer, prior to a user selecting a ticket, the total amount they will be charged for an admission ticket. Price disclosures must include: (1) the base price of the admission ticket; and (2) the all-in price of the admission ticket. "Base price" means the dollar value of an admission ticket reflecting the dollar amount a customer is required to pay, excluding any charges, fees, and taxes; and "all-in price" means the total cost of an admission ticket, including all fees, which may include service fees, processing fees, delivery fees, facility fees, and resale fees.
Disclosures of subtotals, fees, and any other component of an admission ticket purchase price:
Consumer Disclosures.
Prior to a user completing a purchase of an admission ticket, ticket sellers and ticket resellers must also disclose to users:
If a ticket reseller is owned by, owns, or shares common ownership with a ticket seller, they must disclose to a user prior to the user completing a purchasing of an admission ticket:
Admission Ticket Sales Limitations.
Ticket Transferability.
A ticket seller may sell nontransferable admission tickets if it provides consumers an option at the time of initial sale or presale to purchase the same ticket in a transferable form. A person may not be discriminated against or denied access to an event solely because the admission ticket was resold, or resold on a ticket resale marketplace not affiliated with the ticket seller.
Unauthorized Internet Domain Names.
The website of a ticket seller, ticket reseller, and ticket resale marketplace used to sell admission tickets may not use internet domain names containing the name of, or a substantially similar name as, a place of entertainment or name of an event unless the website operator is acting on behalf of the place of entertainment, event, or the person or entity scheduled to perform or appear at the event.
Tentative Tickets.
A ticket reseller may not use a tentative ticket policy under which it resells admissions tickets that are not owned by, under contract to be transferred to, or in the possession of the ticket reseller, unless the policy is disclosed to the purchaser at the outset of the transaction. A required disclosure must include an approximate delivery date and the number of admission tickets guaranteed to be grouped together. If a ticket reseller does not secure the tentative tickets, the reseller must refund to a consumer any deposit made.
Exclusions.
The following are excluded from licensing and consumer disclosure requirements and admission ticket sales limitations:
The substitute bill:
(In support) This policy is a response to recent news, but actually responds to symptoms of a deeper issue. There is a need for fairness and transparency in ticket sales. Ultimately, the bill is really about consumer protection and ensuring that, when individuals go to ticket sites, they are getting the full and most transparent information possible to make smart financial decisions and be able to enjoy entertainment opportunities.
(Opposed) None.
(Other) Fan-friendly legislation includes all-in pricing and regulating the use of bots in ticket purchasing. Congress passed the Better Online Ticket Sales Act in 2016 and Washington has its own prohibition, but these laws are hardly enforced because law enforcement does not have the resources. Please include language that ticket sellers must collect bot data and give it to law enforcement, and please work with the Office of the Attorney General to ensure real enforcement. We also support the all-in pricing model, including providing disclosures before clicking on a topic. All-in pricing provides consumers with a level of transparency we believe is important for customers. The best consumer experience accounts for the cost of doing business in the original price and not at the point of sale. However, all platforms need to be held to compliance.
Ticket holdbacks must be addressed. A report by the New York State Attorney General found that far fewer than 100 percent of concert tickets are made available to the general public. Ticket companies should be required to fully disclose how many tickets are available for sale. Routinely, artists are holding back tickets, and if the public understood that, for example, only 80 percent of available seats are for sale, they would have an eye on the total market available to them.
Dynamic pricing means there is no true face value for a ticket. The 10 percent cap on dynamic pricing does not achieve its goal because there is no true face value, and it will only promote scalping and support bad actors. The secondary market is active, and if individuals on the secondary market are not subject to the dynamic pricing caps, how can there be real competition? Dynamic pricing limitations will significantly harm Washington's live event industry. Artists determine the prices for their tickets when they go on sale, including dynamic pricing, and ticket sellers execute an artist's strategy but don't themselves control pricing.
Consumers should be able to transfer tickets they lawfully purchase. Transferability is a cornerstone of a marketplace and any legislation should protect a consumer's right to transfer tickets they have purchased. Additionally, the use of white label websites should also be outlawed, which are websites deceptively posing as a primary market but they are a ticket broker.
Ticket resale marketplaces should have their own definition and licensing requirement; the ticket sales license data disclosure requirements should be retrospective instead of prospective; and there should be no brick and mortar requirement, because requiring an office in Washington will just result in increasing costs to consumers. Instead, businesses should get a business license with the Secretary of State.